Hundreds of Blue Badges Cancelled After Fraud Probe Finds Permits Issued to Deceased Still in Use

Hundreds of Blue Badges have been cancelled following an investigation by government fraud busters that uncovered disability permits issued to deceased individuals remaining in use. Chancellor John Healey is anticipated to announce at the upcoming Budget that the Public Sector Fraud Authority (PSFA) saved or protected over £400 million last year.

The PSFA, operating within the Cabinet Office, exceeded its target for recovering public funds by 119 percent. The authority is set to receive expanded powers in the spring, enabling it to refer cases directly to prosecutors.

Among the fraudulent activities identified was the misuse of 459 Blue Badges in Wirral, Merseyside. These permits were issued in the names of individuals who had passed away. The Blue Badges, which grant disabled individuals access to priority parking, were cancelled upon discovery of their fraudulent use, resulting in savings of over £363,000 for taxpayers between 2024 and 2025. PSFA investigators identified potentially fraudulent badges by cross-referencing council data with Department for Work and Pensions records. Traffic wardens in the Wirral are now conducting targeted patrols and have the authority to confiscate fraudulent Blue Badges on the spot.

Across the country, more than £34 million worth of Blue Badges have been cancelled over the past two years due to investigations by the PSFA and local councils. Individuals found to be misusing a Blue Badge after the original holder's death face formal warning letters and potential fines of up to £1,000.

Other scams addressed by government fraud busters include the recovery of ten council homes in Ealing, which have been returned to provide scarce social housing to those genuinely in need. The PSFA has also pursued individuals involved in Covid-era Bounce Back Loan fraud and those claiming multiple jobs.

The Treasury reported that approximately £117 million in Bounce Back Loan fraud is being recovered, including £81 million from companies that attempted to evade repayment by dissolving. Furthermore, efforts to protect private firms, such as insurers and utility companies, from fraud have saved £119 million, thereby preventing potential increases in premiums and bills for consumers.

In total, over £400 million of taxpayer and business money was recovered or protected through counter-fraud actions last year. This amount is sufficient to fund 12,600 new NHS nurses, according to Mr. Healey's forthcoming Budget announcement. A Treasury spokesperson stated, "We will go after scammers and fraudsters who cheat the British public. Only by making sure that every pound of taxpayers' money is protected from fraudsters will we be able to deliver the breathing space businesses and families deserve."